Has anyone tried the URL filtering in Tools & Settings > Post, topic settings.

I enabled the filter, and put it to blacklist and then entered a url.

On my test account i then posted a message with the URL.... i don't know what its ment to do...but i saw and was able to click on the url.

Has anyone else tried this feature out?

If you add a url to your blacklist, and enable the url filtering (make sure it's set to blacklist and not whitelist) when you try to post a url that matches the one entered it should block it. The url filtering should probably be mostly used for domains (i.e. blacklist invisionpower.com, not invisionpower.com/index.php?showtopic=#).

Thats what I did and it didn't do anything. I'll open a support ticket then or shall I report as a bug?

Please open a support ticket for now - haven't had any reported problems with this so far so may not be a bug.